DOW RESTRICTED – For Internal Use Only 1 Oracle SIG August 11 th 2014 Integrating OTM With SAP Architect Specialist: Akta Srivastava Lead Architect Specialist: Alok Chandra Sr. Supply Chain Expertise Manager: Laura Wilkinson Freight Global Business Process Specialist: David Pavlik
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DOW RESTRICTED – For Internal Use Only 1
Oracle SIG August 11th 2014
Integrating OTM With SAP
Architect Specialist: Akta Srivastava
Lead Architect Specialist: Alok Chandra
Sr. Supply Chain Expertise Manager: Laura Wilkinson
Freight Global Business Process Specialist: David Pavlik
DOW RESTRICTED – For Internal Use Only
Agenda
Project Background
OTM/SAP Background
High Level Architecture for Carrier Selection and
Freight Payment
Design Approach
Rate Management Utility
Lessons Learned
Questions
2
DOW RESTRICTED – For Internal Use Only 3
Project Background
• Dow is migrating from the SAP R/2 System to SAP ECC
6.0
• OTM implementation became a part of the NEA project
in 2013
• OTM for Carrier Selection and Freight Payment
implementation:
• Europe on May 1st, 2014
• North America on August 5th, 2014
DOW RESTRICTED – For Internal Use Only 4
OTM/SAP Background
• Dow’s core ERP system is SAP ECC, including modules:
• Sales Order processing
• Purchase Order processing
• Standard SAP Route and Route Determination
• SAP Freight Rating (Latin and Pacific regions only)
• OTM provides the following advantages:
• Ability to calculate freight based on Load meter (amount of truck/trailer length used)
• Ability to allow for minimum and maximum prices in case of percentage surcharges
• Ability to settle shipment cost & post freight invoices at the condition level
• Ability to perform freight simulations, which provide all applicable freight components
for a given scenario
Integrating OTM with SAP ECC enables DOW to leverage the best of both systems.
DOW RESTRICTED – For Internal Use Only
High Level Architecture Carrier Selection
5
Ship-From Location
Ship-To Location
Shipping Condition
Transportation Group
Material(s)
Material Freight Group(s)
Weight
Volume
Delivery Date
Carrier(s)
Transport Mode/ShippingType
Transportation Lead Time
Transit Time (including Calendar)
Rail Route ID
Rail Contract
Rail Itinerary
Rule 11 Route
SAP OTM Real-Time PI
Connectivity
• Sales Order Line
Item
• STO Purchase
Order Line Item
• Delivery
Rate Inquiry
(Routing)
• Rate Offering
• Rate Records
• Rate Service
DOW RESTRICTED – For Internal Use Only
High Level Architecture Freight Payment
6
Ship-From Location
Ship-To Location
Shipping Type
Carrier
Equipment
Material(s)
Material Freight Group(s)
Weight
Volume
Ship Date
Accrual Amount - Cost Details by
Base/Accessorial Charges
SAP OTM IDoc processing via PI
Shipment
Rate Inquiry (Rating)
•Rate Offering
•Rate Records
Shipment
Cost
Document
SAW Shipment
ActualShipment XML
PlannedShipment XML
Invoice Invoice Billing XML
DOW RESTRICTED – For Internal Use Only
OTM Rate Structure – Carrier Selection and Transit